House Study Bill 712 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON WHEELER) A BILL FOR An Act relating to school funding by establishing the state 1 percent of growth and the categorical state percent of 2 growth for the budget year beginning July 1, 2024, and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6305YC (4) 90 dg/jh

H.F. _____ Section 1. Section 257.8, subsections 1 and 2, Code 2024, 1 are amended to read as follows: 2 1. State percent of growth. The state percent of growth for 3 the budget year beginning July 1, 2021, is two and four-tenths 4 percent. The state percent of growth for the budget year 5 beginning July 1, 2022, is two and one-half percent. The 6 state percent of growth for the budget year beginning July 1, 7 2023, is three percent. The state percent of growth for the 8 budget year beginning July 1, 2024, is three percent. The 9 state percent of growth for each subsequent budget year shall 10 be established by statute which shall be enacted within thirty 11 days of the transmission of the governor’s budget required by 12 February 1 under section 8.21 during the regular legislative 13 session beginning in the base year. 14 2. Categorical state percent of growth. The categorical 15 state percent of growth for the budget year beginning July 1, 16 2021, is two and four-tenths percent. The categorical state 17 percent of growth for the budget year beginning July 1, 2022, 18 is two and one-half percent. The categorical state percent of 19 growth for the budget year beginning July 1, 2023, is three 20 percent. The categorical state percent of growth for the 21 budget year beginning July 1, 2024, is three percent. The 22 categorical state percent of growth for each budget year shall 23 be established by statute which shall be enacted within thirty 24 days of the transmission of the governor’s budget required by 25 February 1 under section 8.21 during the regular legislative 26 session beginning in the base year. The categorical state 27 percent of growth may include state percents of growth for 28 the teacher salary supplement, the professional development 29 supplement, the early intervention supplement, the teacher 30 leadership supplement, and for budget years beginning on or 31 after July 1, 2020, transportation equity aid payments under 32 section 257.16C . 33 Sec. 2. CODE SECTION 257.8 —— IMPLEMENTATION. The 34 requirements of section 257.8, subsections 1 and 2, regarding 35 -1- LSB 6305YC (4) 90 dg/jh 1/ 2

H.F. _____ the enactment of bills establishing the state percent of growth 1 and the categorical state percent of growth within thirty 2 days of the transmission of the governor’s budget required by 3 February 1 under section 8.21 during the regular legislative 4 session beginning in the base year, do not apply to this Act. 5 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 6 importance, takes effect upon enactment. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to school funding by establishing the 11 state percent of growth and the categorical state percent of 12 growth for the budget year beginning July 1, 2024. 13 The bill establishes a state percent of growth of 3 percent 14 for the budget year beginning July 1, 2024. The state percent 15 of growth is used to calculate the amount of supplemental state 16 aid for a budget year as part of the state school foundation 17 program. The bill also establishes a categorical state percent 18 of growth of 3 percent for the budget year beginning July 1, 19 2024. The categorical state percent of growth is generally 20 used to calculate the amount of supplemental state aid for each 21 of the categorical funding supplements. 22 Under current law, the state percent of growth and the 23 categorical state percent of growth used to determine the 24 funding each school district shall receive for the upcoming 25 budget year is required to be set by statute within 30 days of 26 the transmission of the governor’s budget required by February 27 1 under Code section 8.21. The bill allows the state percent 28 of growth and categorical state percent of growth to be set on 29 a date after 30 days from the transmission of the governor’s 30 budget. 31 The bill takes effect upon enactment. 32 -2- LSB 6305YC (4) 90 dg/jh 2/ 2